SEC chair Gensler holds tight to his crypto position in preview of Senate testimony

The official will testify before the Senate Committee on Banking on Sept. 15; in a transcript released early, he reiterates the primacy of securities law in crypto regulation.

United States Securities and Exchange Commission chairman Gary Gensler is scheduled to testify before the U.S. Senate Committee on Banking, Housing, and Urban Affairs in a hearing titled “Oversight of the U.S. Securities and Exchange Commission” on Sept. 15. The transcript of his speech was released in advance. 

Gensler called securities laws a “gold standard” of capital markets. In his 13-page comprehensive discussion of those markets, crypto markets took up about a page and a half, including footnotes.

Gensler restated his belief that most cryptocurrencies are securities. Since that is so, he has asked SEC staff to “work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.” He continued that many intermediaries, such as exchanges, broker-dealers, and those with custodial functions, deal in securities and should be registered with the SEC “in some capacity.” In addition, he said:

“Given the nature of crypto investments, I recognize that it may be appropriate to be flexible in applying existing disclosure requirements.”

Stablecoins, Gensler said, “may be shares of a money market fund or another kind of security,” and therefore also require registration and regulation.

Related: Sen. Lummis: My proposal with Sen. Gillibrand empowers the SEC to protect consumers

Gensler acknowledged the entry of traditional financial firms into the crypto space and said they are interested in entering “in compliance with time-tested investor protection rules,” which existing intermediaries should follow as well to ensure a level playing field. He added that he has instructed his staff to look for ways security and non-security cryptos can trade together.

Gensler noted that “crypto intermediaries may need to one day register with both the SEC and the Commodity Futures Trading Commission (CFTC),” and there are already dual registrants.

Gensler’s testimony was originally scheduled for Sept. 14, but was rescheduled for the following day. Gensler will deliver his speech at roughly the same time as CFTC chairman Rostin Behnam and several representatives of the crypto industry speak before the Senate Agriculture Committee on the proposed Digital Commodities and Consumer Protection Act. That bill is seen as favorable to the CFTC in relation to the SEC.

Gensler has been repeatedly criticized both for his agency’s unhelpful approach to crypto asset regulation and for its lack of action against industry participants.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin above 20K AGAIN! Is Bitcoin Price Bullish Today?

The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to

Breaking: Do Kwon Linked 3,313 Bitcoin To Be Seized? S. Korea Deepens Probe

Trouble for Do Kwon, Terra co-founder seems to be increasing after Interpol issued Red Notice against him. In the latest hit, South Korean authorities have moved on to deepen their probe against the alleged crypto fugitive. Do Kwon to lose his Bitcoins? According to reports, South Korean prosecutors are moving… Read more

Bitcoin Skyrockets As Stock Market Crashes, Is It Breaking Correlation

The crypto market is experiencing a surprise bounce. Bitcoin has rallied from the $18K-$19K range to cross the $20K mark. It has increased by over 5% in the last 24 hours and is currently trading at $20.1K.  However, since the stock markets are dumping, Bitcoin looks to break the correlation…. Read more

Bitcoin and Crypto Defy Wall Street Meltdown With Strong Rally

Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels. With the recent BTC move, more than $14… Read more